AOL’s Board Approves Restructuring; $150 Million in Severance Charges


AOL’s board has officially approved the restructuring started by CEO Tim Armstrong last month, as part of its first official board meeting as an independent and public company last week, according to an SEC filing. The company has said before it will be slashing a third of its staff of about 7,000. through voluntary buyouts and layoffs. In the filing, it said that the $200 million or so in charges related to this reorg, about $150 million would be in severance and benefit costs, and up to $50 million of charges related to facility closures and other costs. Also, in the filing, it anticipates incurring “non-cash asset impairment charges in the fourth quarter of 2009 associated with the exit of certain of its non-strategic business operations,” which may mean sale of ICQ (to DST?) or some other business (Bebo?) could come within the last few remaining days of this year. Any bets?

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